Reuters | March 6, 2024 |
Cobre Panama mine. (Image: First Quantum Minerals.)
The cost of the closure of Canadian miner First Quantum’s copper mine in Panama is estimated at around $800 million, Trade and Industry Minister Jorge Rivera said on Wednesday.
An inter-ministry coalition, which is developing the mine’s closure plan, is working on alternative measures to recoup funds so that the cost does not come out of the state’s coffers, Rivera told journalists.
Panama’s government ordered the shutdown in December after protests calling for more environmental protections erupted across the country and a court ruling deemed the contract to run the mine unconstitutional.
It is still unclear who will pay for the mine’s closure process, but the Panamanian government suggested on Tuesday that First Quantum’s unit in the country set out financial guarantees to cover the cost of closing its lucrative copper mine.
Creating a plan to close the mine could take between six and eight months, the minister said, noting Panama is headed to elections in May so the next president will be the one in charge of finishing it.
The mine’s activity represents about 5% of the country’s GDP, and Panama is expected to see growth slow in 2024 to 2.5% from 7.5% as a result of the closure of the mine, according to data from the International Monetary Fund (IMF).
(By Elida Moreno; Editing by Brendan O’Boyle)
Future of First Quantum mine is for the people of Panama to decide, US official says
Reuters | March 5, 2024
Under Secretary Jose W. Fernandez. Credit: US State Department
A dispute between First Quantum Minerals and Panama over the Canadian company’s flagship copper mine in the Central American nation is an issue for the people of Panama to decide, a top US official told Reuters.
In a surprise move late last year, Panama ordered the closure of Cobre Panama mine, one of the biggest and the newest copper mines in the world, which accounted for about 40% of First Quantum’s revenue in 2023.
“We have followed the case, and it is an issue for the Panamanian people to decide… and I know it is a situation where some communities, not all have expressed opposition,” Jose W. Fernandez, US under secretary for economic growth, energy and the environment said late on Monday.
Fernandez was responding to Reuters‘ question whether the US, which has close relations with Canada and Panama, had taken up the issue of weakening investment climate in the Central American country.
“The US and Canadian governments have been very supportive but we do not comment on specific discussions,” First Quantum said in reply to a Reuters query on whether it had asked Canada or US to intervene in the issue.
The company is seeking $20 billion through international arbitration from Panama over the mine closure order.
Canadian Trade Minister Mary Nag said in February the government aims to support First Quantum “as best as it can” without elaborating.
Panama holds presidential elections in May, and the future of Cobre Panama mine has emerged as a flash point among opponents and supporters of the mine.
First Quantum shares have lost about half their value since the street protests and last month it announced a series of capital restructuring measures to reduce debt.
Without specifically referring to Panama, Fernandez said that communities need to be convinced they will benefit from mining.
On Monday, the US and its thirteen allies announced a critical minerals partnership to only support projects that follow high environmental, social and governance standards, Fernandez said.
But he said the initiative is not an attempt to force developing countries to choose one country over the other, but to provide alternative.
Currently over 90% of the world’s critical mineral supply chain is dominated by China, and western countries have expressed the need to diversify the supply chain in critical metals.
(By Divya Rajagopal; Editing by Denny Thomas and Marguerita Choy)
Reuters | March 5, 2024
Under Secretary Jose W. Fernandez. Credit: US State Department
A dispute between First Quantum Minerals and Panama over the Canadian company’s flagship copper mine in the Central American nation is an issue for the people of Panama to decide, a top US official told Reuters.
In a surprise move late last year, Panama ordered the closure of Cobre Panama mine, one of the biggest and the newest copper mines in the world, which accounted for about 40% of First Quantum’s revenue in 2023.
“We have followed the case, and it is an issue for the Panamanian people to decide… and I know it is a situation where some communities, not all have expressed opposition,” Jose W. Fernandez, US under secretary for economic growth, energy and the environment said late on Monday.
Fernandez was responding to Reuters‘ question whether the US, which has close relations with Canada and Panama, had taken up the issue of weakening investment climate in the Central American country.
“The US and Canadian governments have been very supportive but we do not comment on specific discussions,” First Quantum said in reply to a Reuters query on whether it had asked Canada or US to intervene in the issue.
The company is seeking $20 billion through international arbitration from Panama over the mine closure order.
Canadian Trade Minister Mary Nag said in February the government aims to support First Quantum “as best as it can” without elaborating.
Panama holds presidential elections in May, and the future of Cobre Panama mine has emerged as a flash point among opponents and supporters of the mine.
First Quantum shares have lost about half their value since the street protests and last month it announced a series of capital restructuring measures to reduce debt.
Without specifically referring to Panama, Fernandez said that communities need to be convinced they will benefit from mining.
On Monday, the US and its thirteen allies announced a critical minerals partnership to only support projects that follow high environmental, social and governance standards, Fernandez said.
But he said the initiative is not an attempt to force developing countries to choose one country over the other, but to provide alternative.
Currently over 90% of the world’s critical mineral supply chain is dominated by China, and western countries have expressed the need to diversify the supply chain in critical metals.
(By Divya Rajagopal; Editing by Denny Thomas and Marguerita Choy)
First Quantum expects to ship trapped Panama copper within weeks
Bloomberg News | March 5, 2024 |
Punta Rincón. Credit: Autoridad Marítima de Panamá
First Quantum Minerals Ltd. expects to secure authorization from Panamanian officials in the coming weeks to sell more than 120,000 metric tons of copper concentrate stored near a port that served its flagship mine.
Unleashing the stockpile of semi-processed metal could generate between $200 million and $300 million based on today’s copper prices. That would be a welcome boost to First Quantum’s balance sheet after the government ordered the closure of the Cobre Panama copper mine in November following fierce public protests. Releasing the copper cache would also bolster a tight global market for concentrate after a series of supply disruptions.
Authorities have acknowledged that the stockpile belongs to the company and can be sold, First Quantum chairman Robert Harding and local spokeswoman Maru Galvez said in a Monday interview at Bloomberg’s Toronto office.
The mine’s preservation and maintenance plan, which includes shipping out the concentrate, has been broadly approved by cabinet and is now being reviewed by the Commerce and Industry Ministry. There’s a time consideration, given the material starts to heat up and risks environmental issues. “It’s an administrative process essentially,” Galvez said.
Commerce and Industry Ministry representatives didn’t immediately respond to calls and messages seeking comment.
(By James Attwood and Jacob Lorinc)
Bloomberg News | March 5, 2024 |
Punta Rincón. Credit: Autoridad Marítima de Panamá
First Quantum Minerals Ltd. expects to secure authorization from Panamanian officials in the coming weeks to sell more than 120,000 metric tons of copper concentrate stored near a port that served its flagship mine.
Unleashing the stockpile of semi-processed metal could generate between $200 million and $300 million based on today’s copper prices. That would be a welcome boost to First Quantum’s balance sheet after the government ordered the closure of the Cobre Panama copper mine in November following fierce public protests. Releasing the copper cache would also bolster a tight global market for concentrate after a series of supply disruptions.
Authorities have acknowledged that the stockpile belongs to the company and can be sold, First Quantum chairman Robert Harding and local spokeswoman Maru Galvez said in a Monday interview at Bloomberg’s Toronto office.
The mine’s preservation and maintenance plan, which includes shipping out the concentrate, has been broadly approved by cabinet and is now being reviewed by the Commerce and Industry Ministry. There’s a time consideration, given the material starts to heat up and risks environmental issues. “It’s an administrative process essentially,” Galvez said.
Commerce and Industry Ministry representatives didn’t immediately respond to calls and messages seeking comment.
(By James Attwood and Jacob Lorinc)
First Quantum opens Panama mine for public visits in restart bid
Bloomberg News | March 5, 2024 |
Cobre Panamá worker. (Image by First Quantum Minerals).
First Quantum Minerals Ltd. is opening its Panamanian mine to daylong visits by members of the public to gain support for restarting the giant copper complex under the next government.
The Cobre Panama mine, which was ordered to close last year in the face of fierce public protests, has signed up about 1,000 people so far to tour the open pit and processing plants in a bid to convince Panamanians of the mine’s merits, chairman Robert Harding and local spokeswoman Maru Galvez said Monday in an interview.
While Harding is confident of restarting the country’s flagship mine, he said he understands there’s a battle for people’s hearts and minds in a country where mining is relatively new, the government is unpopular and misinformation is rife and effective. The firm sees the eight-hour tours — including the opportunity to speak with staff — as a way of rectifying past communications shortfalls at a time when scrutiny on environmental and social issues is growing. A virtual tour is also being prepared.
“We had a mine that worked for the people of Panama, so I’m confident that we will find a solution,” Harding said from Bloomberg’s Toronto offices.
First Quantum acknowledges it could have done a better job touting the mine’s role in generating jobs and revenue for Panama as well as its community and environmental initiatives. But the shutdown order was more a case of the mine being swept up in discontent toward the government and misinformation campaigns via social media, Galvez said.
One campaigner was Hollywood actor Leonardo DiCaprio, who in November reposted a video on his Instagram account calling for the mine to be shut. DiCaprio is also welcome to visit, said Harding. “We’d love for him to come.”
(By Jacob Lorinc and James Attwood)
Read More: Panama GDP growth expected to slow in 2024 on First Quantum mine closure, IMF says
Bloomberg News | March 5, 2024 |
Cobre Panamá worker. (Image by First Quantum Minerals).
First Quantum Minerals Ltd. is opening its Panamanian mine to daylong visits by members of the public to gain support for restarting the giant copper complex under the next government.
The Cobre Panama mine, which was ordered to close last year in the face of fierce public protests, has signed up about 1,000 people so far to tour the open pit and processing plants in a bid to convince Panamanians of the mine’s merits, chairman Robert Harding and local spokeswoman Maru Galvez said Monday in an interview.
While Harding is confident of restarting the country’s flagship mine, he said he understands there’s a battle for people’s hearts and minds in a country where mining is relatively new, the government is unpopular and misinformation is rife and effective. The firm sees the eight-hour tours — including the opportunity to speak with staff — as a way of rectifying past communications shortfalls at a time when scrutiny on environmental and social issues is growing. A virtual tour is also being prepared.
“We had a mine that worked for the people of Panama, so I’m confident that we will find a solution,” Harding said from Bloomberg’s Toronto offices.
First Quantum acknowledges it could have done a better job touting the mine’s role in generating jobs and revenue for Panama as well as its community and environmental initiatives. But the shutdown order was more a case of the mine being swept up in discontent toward the government and misinformation campaigns via social media, Galvez said.
One campaigner was Hollywood actor Leonardo DiCaprio, who in November reposted a video on his Instagram account calling for the mine to be shut. DiCaprio is also welcome to visit, said Harding. “We’d love for him to come.”
(By Jacob Lorinc and James Attwood)
Read More: Panama GDP growth expected to slow in 2024 on First Quantum mine closure, IMF says
Jiangxi Copper raises stake in First Quantum Minerals
This deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.
Additional funds from the latest deal will further assist First Quantum in navigating the financial implications of the mine’s shutdown.
The Cobre Panama mine is a significant asset for First Quantum, and its closure has necessitated robust financial measures to ensure the company’s stability.
Jiangxi is the second-largest shareholder in First Quantum.
Last month, the Chinese company agreed to invest $500m in First Quantum, while First Quantum agreed to supply 50,000 tonnes of copper anode per year to Jiangxi from its Kansanshi mine in Zambia.
In the fourth quarter of 2023, First Quantum swung to a net loss attributable to shareholders of $1.45m, from a $1.17m profit in the same quarter of 2022.
This deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.
March 4, 2024
The latest deal will help First Quantum address financial implications caused by the forced closure of its flagship copper mine.
Credit: TTstudio via Shutterstock.com.
China-based Jiangxi Copper has expanded its ownership in Canadian metals company First Quantum Minerals by acquiring an additional stake for C$287.5m ($212m), Bloomberg reported.
The deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.
It is part of First Quantum’s efforts to strengthen its financial position following the forced closure of its Cobre Panama mine.
The Panamanian Government’s order in November to shut down the mine prompted the company to seek ways to address the resultant challenges. Last month, First Quantum raised C$1.55bn through a bought deal offering.
This fundraising was a key component of the company’s refinancing strategy aimed at bolstering its balance sheet in the wake of the Cobre Panama mine’s closure.
China-based Jiangxi Copper has expanded its ownership in Canadian metals company First Quantum Minerals by acquiring an additional stake for C$287.5m ($212m), Bloomberg reported.
The deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.
It is part of First Quantum’s efforts to strengthen its financial position following the forced closure of its Cobre Panama mine.
The Panamanian Government’s order in November to shut down the mine prompted the company to seek ways to address the resultant challenges. Last month, First Quantum raised C$1.55bn through a bought deal offering.
This fundraising was a key component of the company’s refinancing strategy aimed at bolstering its balance sheet in the wake of the Cobre Panama mine’s closure.
Additional funds from the latest deal will further assist First Quantum in navigating the financial implications of the mine’s shutdown.
The Cobre Panama mine is a significant asset for First Quantum, and its closure has necessitated robust financial measures to ensure the company’s stability.
Jiangxi is the second-largest shareholder in First Quantum.
Last month, the Chinese company agreed to invest $500m in First Quantum, while First Quantum agreed to supply 50,000 tonnes of copper anode per year to Jiangxi from its Kansanshi mine in Zambia.
In the fourth quarter of 2023, First Quantum swung to a net loss attributable to shareholders of $1.45m, from a $1.17m profit in the same quarter of 2022.
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